All Forum Posts by: Cody L.

Investment Info:

Large multi-family (5+ units) commercial investment investment.

Purchase price: $1,675,000
Cash invested: $500,000

(16) residential units, great area of Houston!

What made you interested in investing in this type of deal?

HOT HOT HOT area!!

I'm interested in learning about the experience of brick and mortar people, not the gurus. If someone has bought a property, what is your strategy regarding the redemption period?

One of my tenant, Her rent is due on the 1st and 6 out of 12 month pays rent late. Usually by the 2 Nd and third ,one time on the 12th after I told her if she doesn’t pay me on time and not repond ding my text I will started an eviction.

She has been my tenant for 5 years I started wondering if I should kick he out finally.

Her lease ends on august 31st. Should I just let her go? Will she be upset and destroy my property ?

 @Cody L  I agree with your perspective but here are some other things to consider; 

In the future, when things go wrong and a permit wasn't pulled, you are on the hook. And your insurance company won't pay out. And as they say in the very profitable legal business, "the process is the punishment" and if someone gets hurt or dies, God fobid, you have even more serious problems. Yes, they have you by the  ***** hairs, but as is said "it's the golden rule, he who has the gold, makes the rules". Don't let the buggers win. Cover your arse, do the permits and move on to making more money.

My complaint about permits in my market are:

1) permits required for things that the need for permits has never been enforced.  I have had a lot of water heaters replaced.  Water heater replacement is supposed to have a permit.  No one, even all the licensed plumbers I have used, ask if you desire a permit.  No one wants the cost associated with the permit.  It the lack of permit is never going to be enforced, why require the permit?  Replacing toilets is another great example of this.

2) Absurd upgrades associated with some permits.  I will cover 2 that are pet peeves: a) replace AC condenser of HVAC system.  Due to HERS, virtually every time you will need to replace all ducting. This significantly raises the cost of the project and is reason to consider not getting a permit b) There is newish (actually been around many years, but not as old as many of my units) that require BR windows to be lower than used to be required.  It is for easier ingress/egress which is a good thing.  Replace the window requires lowering the bottom of the window.  Note the existing window does not meet the newish ingress/egress requirement but replace it requires reframing, siding, stucco repair, drywall repair.  IMO the current ingress/egress requirement should apply for any new window opening, but to replace a window that currently does not meet the ingress/egress requirement and requiring the new window to meet the ingress/egress requirement adds significantly to the cost and timeline.  No licensed window contractor that I know of will replace a BR window without making it meet current ingress/egress requirements.  If you want to simply replace the window without expanding the opening you will either need to do it yourself or use a handyman and not have a permit.  I have never seen windows without permit get redflagged, but there is a first time for everything.

3) The bureaucracy of getting permits.  I have various permits being worked currently and many in the past.  I initially submitted the plans on one permit in 3 sets of plan documents.  I was told that they had to be one plan document.  they used an example someone who would submit 100 plan documents.  I could see than being an issue, but 3 is no where near 100.  I a different site plan on a duplex where both units have their own lot separated by a fence.  The site plan I submitted only included the unit that the work was being performed on.  I was told to resubmit the site plan depicting both units.  I asked why and they did not provide an answer.  I suspect it is solely because that is what they are used to.  I submitted a plan for a patio cover that has all details including post and beam sizes, hardware, footing description, etc.  The permit office requested I take their patio document and high light the aspects that applied to my patio.  There was not a single thing in the patio document that was not already in my plan.  This is just some of the crazy bureaucracy that I have encountered when getting permits.

The bureaucracy alone is a reason to consider not obtaining permits.

I have been tagged by code enforcement for unpermitted work.  If the work is done correctly, it often is no more work to get the permit post work than prior to the work.  Same crazy rules and same crazy bureaucracy.  

You should purchase this yourself and then rent it if you can. You will make more money that way. Check out AirDNA and you can see the numbers. I've seen the data and you can make at least 15% ROI, but it does require work.